Federated Investors, one of the largest investment managers in the US, today announced a strategic agreement with London-based GML Capital.

Under the deal GML will market and distribute Federated products focused on investment in global trade finance transactions. GML Capital will advise these.

Through the relationship with GML, Federated expects to develop investment opportunities for its high net worth and institutional investors. Trade finance involves financing cross-border imports and exports of goods and services.

Historically, investors seeking alternative investment products have had limited opportunities to gain exposure to the trade finance asset class. In 2008 this class generated over $130 billion of new investment opportunities.

The asset class offers investors the potential for attractive returns, historically low default and high recovery rates with low correlation to market indices. The sourcing and structuring of these investments requires specialised resources and expertise.

GML is a fund management and advisory company specialising in the emerging markets and trade finance sectors. Its areas of expertise include investment advisory and management, advising on debt restructuring and debt reduction strategies, debt recovery and trading, corporate finance advisory and originating, structuring and distributing new financings.

Federated managed $409.2 billion in assets as of March 31, 2009 through 158 funds and a variety of separately managed account options, It provides investment management to nearly 5,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.